Although these bullet points are posted everywhere possible, including the IRS website, many people overlook the following items regarding the $8,000 Federal First Time Home Buyer Tax Credit:

• If the property ceases to be the owner’s principal residence during the first 36 months of ownership, the ENTIRE tax credit must be paid back, it is not pro-rated.
• Buyers are not eligible for the tax credit if they purchase the home from a close relative, i.e., spouse, parent, grandparent, child, or grandchild.
• Buyers can currently own a vacation or rental home and still qualify for the tax credit as long as they have not owned a principal residence in the last three years.

Rumor has it that the tax credit will be extended, in one form or another, through 2010. Also, MSNBC reported this morning that 1/3 of all home buyers in July were first time buyers. I hope it stays around.

Any questions? Please feel free to call me at (760) 500-1919 or email me: Kevin@MyCWMtg.com